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DPSS ePolicy

CAPI, 49-035 Income, 11-14-2023

NAVIGATION

CAPI

49-035 Income

Release Date
11/17/2020

Section Heading

Purpose

To convert existing policy to new writing style only - No concept changes 

Policy

To determine whether an applicant/participant exceeds the Cash Assistance Program for Immigrants (CAPI) income limit, all countable earned and unearned income must be considered, including any In-kind Support and Maintenance (ISM) that the applicant/participant receives.

There are thre types of income:

  1. Earned;

  2. Unearned; and

  3. In-kind.


Exempt Income

Certain types of support received by an applicant/participant is not considered income because they cannot be used to obtain food, clothing, or shelter. Additionally, anything received from the sale or exchange of the individual’s personal property is not income. Exempt income includes:

  1. Medical care and services; 

  2. Receipt of In-Home Supportive Services (IHSS) or personal care services provided to the participant, or money restricted to paying for such services; 

  3. Proceeds from the sale, exchange, or replacement of a resource (conversion of property, such as the sale of a car);

  4. Income tax refunds;

  5. Payments by a credit life or credit disability insurance policy;

  6. Proceeds of a loan (money borrowed, or money received in payment of a loan);

  7. Replacement of income already received when lost, stolen, or destroyed;

  8. Weatherization Assistance (provided by SoCalGas); and

  9. Certain non-cash items: any item, except shelter, food and/or clothing, which would be an excluded non-liquid resource, such as household goods, furniture, adaptive or assistive devices, and other goods. 

Background

All-County Information Notice (ACIN) No. I-25-19 dated April 17, 2019, states that an individual/couple may be eligible for CAPI, if an individual’s/couple’s countable income is lower than the appropriate CAPI payment standard. The CAPI payment standard is released by the California Department of Social Services (CDSS) every year.

Definitions

Terms and Descriptions 

Blind Work Expense (BWE)

Any work-related item paid by a blind individual under age 65 may be deducted from gross earnings as a BWE. Some of the more common BWE deductions include:

  1. Federal and local income tax; 

  2. Cost of at-work meals; and 

  3. Transportation.

Countable Income

Countable income is the individual’s gross income, plus that of a spouse or ineligible parent, minus any exclusion. An individual’s/ couple’s countable income is used to determine eligibility and the amount of the CAPI payment. The actual CAPI benefit amount is determined by subtracting the countable income from the CAPI payment rate.

Deemed Income

The amount of another person’s income that is considered to belong to the applicant/participant regardless of whether the other person actually makes the money available to the applicant/participant.

Earmarking

A form of sharing of household expenses that applies when an applicant’s/participant’s contribution is totally or partially designated to pay for shelter and/or food, and the applicant’s/participant’s pro rata share for shelter and/or food is satisfied from the earmarked item.

Earned Income

Earned income includes wages, net earnings from self-employment, wages for work performed in a sheltered workshop, in-kind earned income, and royalties. Wages are counted for each month when they are received. The monthly average of the annual net self-employment income is counted for each month of the taxable year. Information may be obtained by viewing the CAPI applicant’s/participant’s most recent income tax forms.

Note: Wages may also include the value of food, clothing, shelter, or other items provided instead of cash. This is referred to as in-kind earned income.

Household

A personal place of residence in which the individual(s) share common living quarters and function as a single economic unit.

Members of a household do not need to be related by blood or marriage but must live together in a single dwelling and function as an economic unit. A person who is temporarily absent from a household is still a member of the household.

Household of Another (HOA)

An applicant/participant who lives with someone else (other than spouse, parent, or a non-qualified alien minor child) and the applicant/participant receives both food and shelter from that person and does not contribute towards the household expenses or pays less than the pro rata share for food and shelter. Also, they do not have ownership interest or rental liability. 

Note: The in-kind support is not counted as income but is applied in this situation by using the reduced needs CAPI payment standards for living in the HOA.

In-Kind Income

Income in the form of cash or negotiable instruments. Examples of in-kind income include real property, food, and occasionally wages (e.g., room and board or clothing as compensation for employment). In-kind income that is unearned and directly satisfies the need for food or shelter is called “In-kind Support and Maintenance” (ISM). 

Note: Resources converted to cash are counted as resources.

 In-Kind Support Maintenance (ISM)

Unearned income received in the form of food, clothing or shelter that is given to a CAPI applicant/participant for free or the applicant/participant receives for free because someone else pays for it.  ISM can be received from someone living in the same household or from outside the household.

Note: Shelter expenses includes room, rent, mortgage payments, property taxes, heating fuel, gas, electricity, water, sewer and garbage services. Mobile home space rental is not a shelter expense. 

Income

Income is anything received in cash or in-kind which can be used to meet the participant’s needs for food, clothing, and/or shelter.

Inside ISM

When a CAPI applicant/participant resides in a non-public assistance household with at least one person other than his/her spouse or minor child, and either:

  1. The CAPI applicant/participant receives contributions from others within the household and has rental liability or ownership interest; or

  2. The CAPI applicant/participant purchases his/her food separately or earmarks food and/or shelter payments.

Impairment-Related Work Expenses (IRWE)

IRWE are expenses for items or services directly related to enabling a disabled person under age 65 to work, and which are necessarily incurred because of a physical or mental impairment. To qualify:

  1. An individual must receive a disability payment before age 65;

  2. The expense must be reasonable; and

  3. The expense must actually be paid and not reimbursable. 

The amount of the IRWE is generally deducted from the gross income for that same month. Typical expenses include medications and medical devices. 

Outside ISM

When a third party who does not live in the household makes a payment to a vendor (not to the applicant/participant) for any item of the household’s shelter and/or food.

Presumed Maximum Value (PMV)

The maximum amount that can be attributed to ISM received by a CAPI applicant/participant for purposes of determining countable income. The value of the PMV is equal to one-third of the federal Supplemental Security Income (SSI) benefit plus $20.

Pro Rata Share

The portion of a household’s total expenses that is attributable to the applicant/participant. It is calculated on the SOC 453, CAPI Statement of Household Expenses and Contributions form, by dividing the average monthly household expenses by the total number of people in the household including adults and children, regardless of age. 

Note: Pro rata share does not apply to those who are fully supported (i.e., those who pay nothing toward their support) and does not apply to applicant/participant who reside alone or with a spouse and/or minor children only. 

Reduced Needs Payment Standard

A lower rate payment than the “independent living” standard for CAPI applicants/participants who reside in another person’s household for an entire calendar month and receive both food and shelter from that individual. When an applicant’s/participant’s monthly benefit rate is calculated using the reduced needs payment standard, ISM does not apply.

Rental Liability

Applies to those who live in their own households and are required to pay rent to the landlord in exchange for the right to reside on the premises. 

Some examples of rental liability include: 

  1. The individual (or his/her spouse, if they are living together) or a person whose income may be deemed to the individual (e.g., the individual’s sponsor, during the active CAPI sponsor deeming period) is listed as a renter or lessee on the lease;

  2. A room rental within a private dwelling is a form of rental liability. When an individual resides in a private dwelling, they must function as a separate economic unit from other household members in order to have rental liability; and

  3. A flat fee for room and board is a form of rental liability. An individual who resides in a separate economic household from the landlord and pays a flat fee for room and board is considered to have rental liability. 

Unearned Income 

Income that is not earned, including but not limited to: 

  1. Disability benefits; 

  2. Unemployment Insurance Benefits (UIB);

  3. Annuities and pensions;

  4. Dividends, interest and royalties;

  5. Rental income;

  6. Prizes and awards;

  7. Gifts and inheritances; 

  8. In-kind Support and Maintenance; 

  9. Alimony and support payments;

  10. Death benefits; and

  11. Federally funded public assistance (for example, California Work Opportunity and Responsibility to Kids (CalWORKs)). 

Requirements

Earned Income

Net earnings from self-employment are counted on a taxable year basis. The yearly total is divided by the number of months in the taxable year to arrive at the monthly earnings.  Other earned income is counted when it is received or set aside for the employee’s use. 

Earned income exclusions are applied in the following order:

  1. Earned income excluded by other federal law;

  2. Earned income tax credit;

  3. Up to $10 of infrequent or irregular earned income; 

  4. Up to $400 per month, but no more than $1,620 per year, for blind or disabled children regularly attending school; 

  5. Any portion of the $20 monthly exclusion that has not been applied against unearned income in the same month;

  6. Earned income of $65 per month; 

  7. One-half of the remaining earned income in a month;

  8. Earned income used to pay IRWE for disabled (but not blind) individuals under age 65; 

  9. BWE for blind individuals under age 65;

  10. Earned income used to meet any expenses reasonably attributable to the earning of income for blind individuals who are under age 65; and 

  11. Earned income used to fulfill an approved Plan for Achieving Self-Support (PASS) for blind and disabled persons under age 65.

Unearned Income

Unearned income is counted in the month it is received. Generally, the gross amount of the unearned income in a month is counted before any deductions for:

  1. Recovery of an overpayment from another benefit program;

    Note:     Amounts withheld to recover overpayments are excluded if the individual previously received CAPI and another benefit simultaneously and the overpayment amount was included in computing the CAPI payment. 

  2. Any garnishment or withholding to pay a debt or legal obligation, such as child support; and

  3. Any withholding to make payments or to pay insurance premiums, such as Medicare. 

    Note:     SSI/State Supplementary Payment (SSP) benefits received by a spouse living in the same household as the CAPI applicant/participant is counted as unearned income based on need.

 

Less Than Gross Amount Counted

Less than the gross amount of unearned income is counted for:

  1. Insurance settlements, from which costs incurred in getting payment, such as legal and medical expenses, are subtracted;

  2. Retroactive checks from another benefit program, which may have legal fees subtracted if the fees are associated with obtaining the retroactive payment; 

  3. Death benefits, from which any portion used to pay for last illness or burial expenses of the deceased may be subtracted; and 

  4. Veteran’s benefits, from which any additional benefits paid to the participant due to having a dependent spouse and/or child claimed on his/her benefits case is subtracted from the gross benefit. 

 

Unearned Income Exclusions

Exceptions to unearned income include: 

  1. Unearned income excluded by other federal laws, such as CalFresh, federal housing and utility assistance, education assistance, and certain payments to Native Americans;

  2. Any public agency’s refund of taxes paid on real property or food;

  3. Assistance based on need that is wholly funded by a state or political subdivision, such as General Relief (GR), which is considered a loan;

  4. Any portion of a grant, scholarship, or fellowship used for paying tuition, fees, or other necessary educational expenses other than food, clothing, and/or shelter;

  5. Food raised and consumed by the applicant or other household members;

  6. Assistance received under the Disaster Relief and Emergency Assistance Act provided under federal statute;

  7. Up to $20 of irregular and infrequent income received no more than once per quarter, such as interest;

  8. Payments based on state residence (Alaska);

  9. Payments for providing foster care to an ineligible child who was placed in the applicant’s/participant’s home by a public or private nonprofit agency;

  10. Interest earned on excluded burial funds;

  11. In-kind home energy assistance provided by a nonprofit agency or utility company; 

  12. One-third of support payments for eligible children;

  13. The first $20 of any unearned income in a month (The $20 exclusion does not apply to a needs-based benefit that is totally or partially funded by the federal government.  The most common examples are Temporary Assistance for Needy Families (TANF) and Veterans Administration (VA) pensions); 

  14. Any unearned income used to fulfill an approved PASS;

    Note:     Through this plan, a blind or disabled individual under age 65 may set aside income or resources and have them excluded in order to fulfill a PASS. The plan must be in writing and approved by the County.  Any money saved for a PASS must be kept separate from other resources. Administrative staff shall call General Relief & CAPI Program staff to determine whether a PASS can be approved.

    Types of PASS money usage (any of which could reasonably be expected to assist the individual to become employed) include, but are not limited to:

    • Vocational training;

    • Buying a vehicle; or 

    • Buying computer equipment.
       
  15. The value of any federal housing subsidies;

  16. Interest earned on excluded burial space;

  17. The value of any commercial transportation ticket for United States travel (including Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands) that is received as a gift;

  18. Payments from a state-based fund to aid victims of violent crime; 

  19. Relocation assistance provided by a state or local government;

  20. Hostile fire pay received from one of the uniformed services pursuant to United States Code 310; 

  21. Amounts withheld to recover overpayments are excluded if the individual received CAPI and another benefit at the same time and the overpayment amount was included in computing the CAPI payment;

  22. Costs incurred in getting payments such as legal and medical expenses; 

  23. Legal fees associated with receiving a retroactive check from another benefit program; 

  24. Any portion of a death benefit used to pay for last illness or burial expenses of the deceased; and  

  25. Any portion of Veteran’s benefits paid to the recipient because of a dependent is subtracted from gross benefit.

    Note:     The American Recovery and Reinvestment Act (ARRA) of 2009 gives the participants of UIB an additional $25 supplemental weekly payment.  For CAPI purposes, the $25 supplemental weekly payment is still considered unearned income and is to be included when determining resources and income. 

In-Kind Support Maintenance (ISM)

ISM is valued in two different ways:

  1. When an applicant/participant is living in another person’s (relative or non-relative) household for an entire calendar month and receives both food and shelter from that person, the applicant/participant is subject to the reduced needs CAPI payment.

    • The reduced needs payment standard is used regardless of the actual value of the ISM received in this situation.

    • A person subject to the reduced needs payment standard cannot be charged with any other ISM income.

    • A person who pays a pro rata share of the household’s food and/or shelter costs cannot be subject to the reduced needs payment standard. 
       
  2. ISM is charged as unearned income subject to the PMV when it is received in all situations other than the one described above.

    • The value of the ISM income charged equals the lesser of its actual value or the PMV.

    • ISM from within the household must be calculated when the individual is living in non-public-assistance household with someone other than a spouse or minor child and either has rental liability or ownership interest and is receiving contributions from others or is either purchasing food separately or assigning food or shelter payments. 

    • ISM from outside the household must be calculated when a third party who does not live in the household makes a payment to a vendor for an item of the household’s shelter or food. Two examples are:

      1. Rent-free shelter; and 

      2. Rental subsidy.   

        Note: Rental subsidy must be calculated when the applicant/participant has rental liability (including room rentals within someone else’s home) and someone in the household is related as parent or child to the landlord or landlord’s spouse.         

Deemed Income

There are three categories of individuals whose income may be deemed to an applicant/participant.

  1. Ineligible spouse who is living in the same household as the applicant/participant.

  2. Ineligible parent(s) who is living in the same household as the minor applicant/ participant.

    Note: Deeming from an ineligible parent(s) to a child stops effective the month after the child attains age 18. 

  3. Sponsor of a non-citizen, regardless of where the sponsor is living. The sponsor’s income also includes the sponsor’s spouse’s income if the sponsor and the spouse live in the same household.

    The length of the deeming period depends on:

    1. Which version of Affidavit of Support the sponsor signed; and

    2. For a non-citizen who entered the United States on or after August 22, 1996, whether they are eligible for basic CAPI or extended CAPI. 

 

Deemed Income Exclusions

Income excluded from deeming from an ineligible parent or spouse includes all of the following:

  1. All the income exclusions listed under “Earned Income” and “Unearned Income”; 

  2. Any public income-maintenance payments, except SSI/SSP that the ineligible spouse receives, and any income which has been counted or excluded in figuring the amount of that benefit;

  3. Income used to comply with the terms of court-ordered support;

  4. ISM; and 

  5. Receipt of In-Home Supportive Services (IHSS) paid to the ineligible spouse or parent(s) for providing care, attendant, or homemaker services to the applicant/ participant. 

 

Parent-to-Child Deeming

Parent-to-child deeming applies whenever a minor child under age 18 lives with his/her parent(s), including stepparents. The parent-to-child deeming rules are applied through the month in which the child reaches age 18.

Verification Docs

As applicable, a CAPI applicant must provide the following verifications to his/her Eligibility Worker (EW) as part of the CAPI application process:

Type and Acceptable Documents

Applicant Verifications 

Documentation verifying statements made on SOC 814, Statement of Facts Case Assistance Program for Immigrants (CAPI) form, such as pay stubs, bank statements, tax records, rent receipts, proof of property ownership, landlord statement, lease agreements, etc.

 Sponsor Verifications

Documentation verifying statements made on SOC 814 and SOC 860, Sponsor Statement of Facts Income and Resource form, such as sponsor’s contact information, pay stubs, bank statements, tax records, rent receipts, proof of property ownership, etc.

Immigration Documents 

Evidence of current immigration status, such as Legal Permanent Resident card.

 Identity Documents

Government issued photo identification such as driver’s license, passport, matricular card, or U. S. Citizenship Immigration Services documentation.

 Proof of Age

Evidence of date of birth such as birth certificate.

 Proof of Supplemental Security Income (SSI) Ineligibility

A denial letter from Social Security Administration (SSA) issued within the past six months before the CAPI application date that indicates the applicant is ineligible for SSI/SSP solely due to his/her immigration status.  

Note: An alternate acceptable document is a receipt from SSA indicating that the CAPI applicant has applied for SSI/SSP and that the application is currently being reviewed. 

Procedures

Administrative Release

Number: 5857        Date: November 17, 2020

Determining Income 

 Responsible Staff and Activity

Eligibility Worker 

  1. Review the Income and Eligibility Verification System (IEVS) Applicant abstracts at the time of application and at redetermination/recertification.

    (Refer to 20-006.1 Income and Eligibility Verification System, .Applicant System)

  2. Utilize the following worksheets to determine CAPI payment amounts:

    • SOC 452, Cash Assistance for Immigrants (CAPI) Income Eligibility  – Adult (6/19), to calculate the CAPI payment for adult applicants/participants.

    • SOC 452A, Cash Assistance Program for Immigrants (CAPI) Income Eligibility – Child (8/05), to calculate the CAPI payment for child applicants/participants. 

    • SOC 454, Cash Assistance Program for Immigrants (CAPI) Sponsor to Alien Deeming Worksheet (1/19), to calculate the sponsor deeming amounts for CAPI payment. 

 

If the Applicant's/Participant's Spouse is Receiving SSI/SSP, Then...

The EW must use the SOC 452 to calculate the CAPI benefits based on income received by the applicant/participant. Column A of the SOC 452 should be used for calculating CAPI benefits when the CAPI applicant’s spouse receives SSI/SSP.

Note: General Relief or CalWORKs benefits are not counted as income when determining benefits for CAPI.

If the Applicant/Participant Has a Sponsor, Then...

Deeming from a sponsor may occur regardless of whether the sponsor lives in the same household as the applicant/participant. The sponsor’s income is not subject to any of the regular or deeming exclusions, although the sponsor does get an allocation.

Except for time-limited CAPI participants, sponsor-to-alien deeming rules differ depending on what type of Affidavit of Support the sponsor signed.

 Responsible Staff and Activity 

Eligibility Worker 

The EW is responsible for knowing when the deeming period ends for CAPI cases, except for time-limited CAPI participants. CAPI participants are time-limited:

  1. If the immigrant’s sponsor signed the old Affidavit of Support United States Citizenship and Immigration Services (USCIS) Form I-134, the deeming period ends after three years. 

  2. If the immigrant’s sponsor signed the new Affidavit of Support USCIS Form I-864, deeming continues until the immigrant becomes a naturalized citizen or can be credited with 40 qualifying quarters of work. 

  3. If the immigrant is a victim of abuse, deeming will also stop for CAPI, whether or not they are living in the same household as the individual responsible for the abuse. 

    Note: In the event of a sponsor’s death, deeming may continue from a joint sponsor, such as the sponsor’s spouse, who has also signed an Affidavit of Support.  Deeming will also continue to apply from a disabled sponsor.

  4. If the immigrant is a victim of abuse, deeming will also stop for CAPI, whether or not they are living in the same household as the individual responsible for the abuse.

    Note: In the event of a sponsor’s death, deeming may continue from a joint sponsor, such as the sponsor’s spouse, who has also signed an Affidavit of Support. Deeming will also continue to apply from a disabled sponsor.

The deeming period for the time-limited CAPI program is five years, regardless of which Affidavit of Support was signed by the sponsor.

The 5-year sponsor-deeming period for time-limited CAPI applicants/participants starts from the date the sponsor executed the Affidavit of Support or the date of the immigrant’s arrival in the United States, whichever is later. 

 

If the Applicant/Participant is a Minor, Then...

Deeming from an ineligible parent(s) to a child stops effective the month following the month in which the child attains age 18.

If the Applicant/Participant Has an Ineligibile Spouse/Parent, Then...

Deeming from an ineligible spouse or parent occurs only when that spouse or parent is living in the same household with the applicant/participant.

 Responsible and Activity 

Eligibility Worker 

The EW should be aware that income of an ineligible spouse or parent is subject to the same exclusions that apply to the participant, plus:

  1. Any public assistance payments, except for SSI/SSP;

  2. Any other income used by a public assistance program in figuring that payment;

  3. Income used to comply with the terms of court-ordered support, or support payments enforced under Title IV-D; and

  4. Income paid under a federal, state or local government program to provide the participant with chore or homemaker services, such as IHSS payments.
 

If the Applicant/Participant is Receiving Food, Clothing, or  Shelter for Free or Someone Else Pays for It From Inside or Outside the Household, Then...

  1. ISM being received from someone INSIDE the household can be determined under the:

    1. Value of the reduce needs Household of Another (HOA) living arrangement rule; or

    2. PMV rules.
       
  2. ISM being received from someone OUTSIDE the household can be determined only under the PMV rule. 

An applicant/participant living with others and paying a pro rata share of the household expenses is considered to be in an independent living arrangement and is considered not receiving ISM from inside the household. Likewise, an applicant/participant living in a public assistance household is presumed to be sharing expenses equally and is; therefore, considered to be in an independent living arrangement, and not receiving ISM from inside the household.

Note: An individual who may appear to have insufficient income for self-support may be in receipt of ISM, which allows them to obtain food and/or shelter.  This in-kind income would affect the amount of CAPI benefits the applicant/participant will receive.


Calculating ISM

  1. Determine whether the reduced needs payment standard applies.

    Note: ISM is zero when the reduced needs payment standard applies.
     
    • If the Applicant/Participant Resides in the Household of Another Person (Related or Unrelated) For an Entire Calendar Month, and Receives Food and Shelter From That Person, Then...

      • The reduced needs payment standard applies.
         
    • If the Applicant/Participant Meets the Above Standards and Receives Non-medical Care From One or More Members of the Household, Then...

      • The reduced needs payment standard does not apply.  Such applicants/participants are subject to the higher CAPI non-medical out-of-home care payment rate.

        “Non-medical care” includes assistance with activities of daily living such as taking medication, dressing, bathing, toileting, grooming and personal hygiene, monitoring food intake or special diets, maintenance and/or supervision of customer cash resources, protective supervision, and other specified personal and domestic services.

    • If the Applicant/ Participant Receives at Least Some of Their Shelter and Some of Their Food From a Member of the Household, Then...

      • The reduced needs payment standard will apply.
         
    • If the Applicant/ Participant Pays for All Their Food With Calfresh Benefits And/or With the Assistance of Food Banks, Government or Church Food Distributions, Free Senior Meals or Similar Community-Based Alternative Resources, Then...

      • The reduced needs payment standard does not apply because the applicant/participant does not receive any food from the head of household.

    • If A Portion of an Applicant’s/ Participant’s Food Is Provided From the Previous Standard Listed and Is Supplemented With Food Provided by One or More Members of the Household, Then...

      • The reduced needs payment standard will apply. 
         
  2. Determine whether inside and/or outside ISM applies. 

    • Outside ISM must be developed when a third party who does not live in the household makes a payment to a vendor for an item of the household’s shelter or food.  Outside ISM, like inside ISM, is treated as income to the applicant/participant and is subject to the PMV. 

      Note: Outside assistance such as Section 8 housing subsidies, CalFresh benefits, and any assistance based on need wholly funded by a state, county, or city government are excluded from income and do not constitute outside ISM. 

    • In cases where an applicant/participant is receiving ISM from both outside and inside the household, the total of the outside ISM and the inside ISM must be charged as income to the applicant/participant, subject to the PMV. 

  3. Determine whether pro rata share applies. 

    • It is the EWs responsibility to verify the applicant’s/participant’s allegations regarding non-public assistance household status and the number and identity of people sharing the residence.

      • If Every Member of the Applicant’s/Participant’s Household Receives Some Type of Public Income Maintenance Payments, Then...

        • ISM does not apply, and pro rata share need not be calculated.
           
      • If the Applicant/Participant Resides Alone, Then...

        • Pro rata share does not apply and inside ISM is zero.
           
      • If the Applicant/ Participant Resides With Spouse and/or Minor Children Only

        • Pro rata share does not apply and inside ISM is zero.
           
  4. Determine the number of people residing in the applicant’s/participant’s household.  The CAPI applicants/participants often allege that they reside in their own households even though they share a residence with others. 

  5. Calculate the applicant’s/participant’s pro rata share of household expenses (if applicable) by dividing the total monthly household expenses by the number of people (counting adults and children) residing in the household.

    • If the Applicant’s/ Participant’s Monthly Household Contribution Equals or Exceeds Pro Rata Share, Then...

      • Inside ISM does not apply. This includes shared living situations in which “roommates” share living expenses equally (in which case each effectively resides in their own household).
         
    • If the Applicant’s/ Participant’s Monthly Household Contribution Is Less Than Pro Rata Share, Then...

      • The difference is the amount of ISM charged as unearned income to the applicant/ participant (subject to PMV).
         
  6. Determine whether actual value of ISM or PMV applies.
     
    • Regardless of the amount of ISM attributable to an applicant/participant, the EW may not charge the applicant/participant with more than the PMV. As the PMV is based on the current SSI rate, it changes from year to year. 

 

Types of Situations in Which ISM Applies

The following are among the most common situations in which ISM must be developed:

  • If the Applicant/Participant Receives Free Shelter and Purchases Food With Calfresh Benefits, Then...

    • The applicant’s/participant’s pro rata share of shelter expenses is ISM that is countable against their CAPI grant, subject to the PMV. The applicant’s CalFresh is not counted as outside ISM because CalFresh is an unearned income exclusion.

  • If the Applicant/Participant Pays Pro Rata Share of Shelter (Only) Or of Food (Only), Then...

    • ISM must be developed if a CAPI applicant/participant either:

      • Receives at least some of their shelter from within the household but does not receive any food from within the household; or

      • Receives at least some of their food from within the household but does not receive any shelter from within the household. 

        Note: If the applicant/participant receives some or all of their shelter and food from someone within the household but does not receive any shelter from within the household, the “reduced needs” payment standard would be applicable.
         
  • If All of the Applicant’s/Participant’s Shelter or Food Is Paid for by One or More Persons Outside the Household, Then...

    • Outside ISM must be developed because a third party is making food or shelter payments to a vendor on the applicant’s/participant’s behalf.

  • If the Applicant/Participant Is Receiving Support From Within the Household, Then...

    • The EW must calculate ISM and count it as income (at the PMV unless actual value is less) of an applicant/participant who resides in the household of another and pays for some (less than pro rata share) of their shelter or food expenses each month but receives part of their shelter or food from within the household. 

      Note:       This scenario is different than a situation in which an applicant/participant is fully supported from within the household in which case the reduced needs payment standard would apply, and ISM would be zero. 
       
  • If The Applicant/Participant Is Receiving Support From Outside the Household, Then...

    • The applicant/participant must be evaluated for ISM (subject to PMV).

 

Situations in Which Inside ISM Does Not Apply

The following are among the most common situations in which inside ISM does not apply and is therefore calculated as “zero” on the SOC 452. 

Note: Outside ISM may still apply if someone outside the household is making payments directly to a vendor to pay for applicant’s/participant’s shelter and/or food.

  • If the Applicant Lives Alone or Resides With Spouse And/or Minor Children Only, Then...

    • There is no one in the household who could provide inside ISM to the applicant/participant. The applicant’s/participant’s spouse is either applying for or receiving CAPI jointly with the applicant/participant, or else is ineligible; in the latter case, all the countable income of the applicant’s/participant’s spouse is treated as the applicant’s/participant’s income (“spousal deeming”).

      Note: An ineligible spouse includes a spouse who may be eligible for CAPI or SSI/SSP but who chooses not to apply.
       
  • If the Applicant/Participant is Homeless, Then...

    • Inside ISM is not determined since homeless individuals are not considered to be living in a household. They are defined as those with no permanent living arrangement or fixed place of residence, including transients and those in temporary living situations (e.g., living in a homeless shelter, a motel room, or “couch surfing” with a succession of family or friends”.

  • If the Applicant/ Participant Is Receiving Full Support From Within the Household, Then...

    • The CAPI reduced needs payment standard applies and ISM calculated as zero on SOC 452.

  • If the Applicant/ Participant Is a Blind or Disabled Minor, Then...

    • It is unnecessary to calculate the value of ISM for blind or disabled minors who are applying for or receiving CAPI, in most cases. 

      Note:       When a blind or disabled minor resides with one or both parents, the minor is presumed to be fully supported.  When a parent is ineligible for either CAPI or SSI/SSP, the value of ISM received by the minor from the parent is accounted for through the parent-to-child deeming process.  The minor’s CAPI eligibility and payment amount is calculated using the SOC 452A worksheet and the reduced needs standard for disabled/blind minors is used from the CAPI payment standards table.

    • However, when a disabled or blind minor receives ISM from sources other than a resident parent, including ISM provided by other relatives and non-relatives residing inside or outside the household, the ISM is treated as unearned income to the child and is listed on the SOC 452A in Column B on line 2.
       
  •  If the Applicant/ Participant Applies for the Indigence Exception, Then...

    • The EW must calculate the actual value of all inside/outside ISM (except the value of housing subsidies and CalFresh benefits) received in order to determine whether the indigence exception applies.

 

Rules to Determine ISM

The following are rules that the EW can utilize to determine ISM:

  • Household of Another (HOA)

    • A reduced payment living arrangement category due to the participant living in another person’s household for an entire month and receiving ISM in the form of both food and shelter from that person.

    • An applicant/participant cannot be placed in the HOA reduced payment category if they:

      • Have ownership interest or rental liability; or

      • Are paying the pro-rata share of the household’s food and/or shelter expenses.

        When the HOA applies, the PMV cannot be charged. 
         
  •  Presumed Maximum Value (PMV)

    •  An amount charged when an individual is receiving ISM, but is not subject to the HOA living arrangement. Instead of determining the actual value of any food, clothing, or shelter received, the EW shall presume that it is worth a maximum value.

    • ISM cannot be charged at a rate higher than the PMV regardless of the actual value of the food, shelter or clothing received.

 

How ISM is Valued Under the PMV

The EW can use the actual value of ISM instead of the PMV when a participant can rebut the PMV by presenting evidence that the actual value of the ISM is less than the PMV. If the rebuttal is successful, the individual will be charged with just the actual value.

 

When the ISM Is at a Higher Rate Than the PMV

The EW is responsible for ensuring that the ISM is not charged at a rate higher than the PMV regardless of the actual value of the food, shelter, or clothing received.

ISM is unearned income even when it is related to certain work activities in another person’s home.  There are two reasons for this under regulation:

  1. Household contributions must be in cash; and

  2. Babysitting, housekeeping and similar chores are not counted as valid contributions towards the household expenses.

When food or shelter is provided as payment for work performed inside the household, they must be counted as ISM rather than wages according to federal regulations. 

Note: HOA and PMV rules do not apply at the same time; they are mutually exclusive.  When the HOA applies, the PMV cannot be charged.

If the Applicant/ Participant Worked as a Poll Worker, Then...

The EW should treat earnings received from a participant’s employment as a poll worker during a scheduled election as a one-time only, non-recurring income payment for CAPI. Since poll worker income is seasonal, and the amount and date of the income cannot be reasonably anticipated, it is not considered in the eligibility determination or benefit calculation for CAPI benefits.

Poll worker income is treated as an earned income and is subject to the General and Earned Income exclusions applicable to this type of income. 

If the Applicant/ Participant Lives With Someone Else (Other Than a Spouse or a Parent of a Minor Child) And Receives Both Food and Shelter From That Person for an Entire Month, Then...

The HOA reduced living arrangement is applied.

Note: The in-kind support is not counted as income but is applied in this situation by using the reduced needs CAPI payment standards for living in the HOA.

Forms

Examples

Example 1 – Treatment of ISM

A CAPI applicant living with her adult daughter makes no cash contribution towards the household and receives both food and shelter from her daughter. In return, the applicant cares for her grandchildren 10 hours per day. The CAPI applicant would be subject to the HOA living arrangement, but not charged with any earned income.

 

Example 2 – Treatment of ISM

A CAPI participant living with his son is getting free housing and utilities and is also receiving CalFresh (CF). Because he is providing his own food, this is not a HOA situation (in which both food and shelter are provided). To compute the budget, the PMV for housing and utilities only is considered income, and the $20 income exclusion is applied. 

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Administrative staff may contact the General Relief Special Projects & SSI Advocacy Policy Section at (562) 908-6732.

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